Carnegie 


DIVISION  OF  INTERCOURSE  AND  EDUCATION 

Publication   No, 

PROBLEMS  ABOUT  WAR 

For  Classes  in  Arithme 

Suggestions   for   Makers   ol    Textbooks   and  > 

BY 

DAVID  EUG!         SMITH,  Ph.D.,  LL.D. 

With  an  :  it  oducticm  by 
PAUL  MONROE,  Ph,D, 


PUBLISHED  BY  THE  ENDOWMENT 

WASHINGTON,  D,  G, 

1915 


Carnegie  Endowment  for  International  Peace 

DIVISION  OF  INTERCOURSE  AND  EDUCATION 
Publication   No.   10 

PROBLEMS  ABOUT  WAR 

For  Classes  in  Arithmetic 

Suggestions   for   Makers   of   Textbooks   and    for    Use   in   Schools 

BY 

DAVID  EUGENE  SMITH,  Ph.D.,  LL.D. 

I 

With  an  Introduction  by 
PAUL  MONROE,  Ph.D.,  LL.D. 


PUBLISHED  BY  THE  ENDOWMENT 

WASHINGTON,  D.  C. 

1915 


REQUESTS  FOR  ADDITIONAL 
COPIES  OR   FOR  FURTHER  INFORMATION 

SHOULD   BE  ADDRESSED   TO 

DIVISION  OF  INTERCOURSE  AND  EDUCATION 

CARNEGIE    ENDOWMENT    FOR    INTERNATIONAL    PEACE 

407  WEST  117TH  STREET 

NEW   YORK  CITY 


INTRODUCTION 

This  pamphlet  is  issued  with  two  purposes.  The  first  is  that 
of  presenting  to  school  children  some  of  the  facts  regarding  the 
price  that  is  paid  for  the  militant  activities  of  nations.  The 
second  is  that  of  enlisting  their  cooperation  and  that  of  teach- 
ers of  mathematics  in  the  preparation  of  similar  problems 
through  the  study  of  facts.  The  larger  pamphlet  which  is  pro- 
duced by  these  competitive  efforts  will  in  time  be  placed  at 
the  service  of  teachers  of  mathematics  or  of  those  who  prepare 
texts  in  arithmetic.  It  is  not  desired  to  give  the  children  of 
our  schools  any  unfair  bias,  but  simply  to  present  to  them  some 
facts  to  the  knowledge  of  which  they  are  entitled.  It  is  hoped 
that  from  a  familiarity  with  such  facts  presented  in  connection 
with  the  various  subjects  of  study,  a  broader  patriotism  and 
higher  ideals  may  result.  It  should  be  noted  by  the  teacher  that 
the  formulation  of  problems  from  phenomena  of  our  present 
environment  and  the  use  of  mathematical  processes  to  solve 
actual  problems  of  our  social  life,  is  in  accordance  with  the 
soundest  educational  principles. 

PAUL  MONROE. 


381170 


PROBLEMS  ABOUT  WAR 

FOR  CLASSES  IN  ARITHMETIC 

By  DAVID  EUGENE  SMITH 

General  Object  of  these  Problems. — The  general  object  of 
these  problems  is  apparent.  Briefly  stated,  they  are  designed 
to  lay  before  young  people  in  the  elementary  schools,  at  the 
most  impressionable  age,  the  fact  of  the  wastefulness  of  war. 
The  questions  are  so  framed  as  to  emphasize  this  point  at 
various  stages  in  the  study  of  arithmetic,  and  to  do  it  in  such  a 
way  as  to  give  the  pupil  not  only  some  valuable  work  in  com- 
putation but  some  facts  which  will  influence  his  later  thoughts 
and  actions  on  the  question  of  war. 

On  the  Nature  of  a  Good  Problem. — In  order  to  be  a  good 
problem  in  arithmetic,  a  question  must  involve  the  kind  of 
computation  which  the  average  citizen  needs  to  know,  which 
principle  excludes  such  a  topic  as  cube  root;  it  must  ask  for 
a  result  which  the  average  citizen  might  naturally  wish  to  find, 
which  principle  excludes  the  finding  of  the  time  in  which  a 
given  sum  will  yield  a  given  interest  at  a  given  rate;  it  must 
be  interesting,  or  easily  capable  of  being  made  interesting  to 
a  pupil,  which  excludes  problems  about  the  population  of  a 
place  like  Mukden ;  and  it  must  be  stated  in  language  which 
is  fairly  familiar  to  the  class,  which,  in  the  early  grades,  ex- 
cludes problems  about  proteids.  For  example,  the  following 
is  a  type  of  a  bad  problem :  "The  cost  to  France  of  the  Franco- 
Prussian  war  of  1870,  in  francs,  is  the  positive  root  of  the 
quadratic  equation  x*  —17,999,999,998^—36,000,000,000=0. 
Find  the  cost/'  Such  a  problem  is  ridiculous. '  No  one  would 
ever  find  the  cost  in  any  such  way,  and  the  mere  statement  of 
the  question  would  bring  reproach  upon  the  subject  of  algebra. 
Equally  bad  would  be  a  problem  framed  on  such  a  plan  as 
this:  "In  1913  the  amount  paid  by  England  for  war  pur- 
poses plus  the  amount  paid  by  France  was  so  much,  while  five 
times  the  amount  paid  by  England  minus  twice  the  amount 
paid  by  France  was  so  much.  Find  the  amount  paid  by  each." 
Now  it  would  be  evident  to  any  pupil  that  the  one  who  framed 
a  question  as  absurd  as  this  must  have  known  the  answers  in 
advance,  and  that  the  only  purpose  of  the  question  would  be 
to  puzzle  the  learner,  and  so  the  problem  would  have  substan- 
tially no  value. 


It  is  for  such  reasons  as  these  that  the  problems  relating  to 
the  wastefulness  of  war  must,  in  the  main,  be  those  of  simple 
arithmetic.  We  use  algebra,  trigonometry,  the  calculus,  de- 
scriptive geometry,  geodesy,  and  the  like,  in  military  and  naval 
affairs,  but  we  do  not  use  them  for  the  purpose  which  we  have 
in  mind  in  this  series  of  problems,  and  any  attempt  to  use  them 
here  would  bring  reproach  upon  the  whole  movement. 

Necessity  for  Fairness. — No  effort  of  this  kind  can  be  suc- 
cessful or  should  be  successful  if  it  is  characterized  by  a  spirit 
of  unfairness.  If  pupils  believe  that  the  truth  is  not  being  told 
to  them,  the  lesson  sought  to  be  inculcated  will  all  be  lost.  Al- 
though the  data  of  these  problems  are  taken  from  the  best 
authorities,  and  are  supposed  to  be  correct,  it  must  be  under- 
stood that  they  are  presented  for  the  avowed  purpose  of  show- 
ing the  wastefulness  of  war,  not  only  in  money  but  in  life  and 
in  whatever  admits  of  numerical  measurement.  This  is  done, 
however,  with  entire  fairness,  and  it  is  believed  that  the  con- 
clusions which  a  pupil  is  led  to  draw  from  the  problems  are 
.correct.  '  On  the  other  hand,  it  should  be  distinctly  admitted 
that  there  is  an  argument  on  the  other  side  of  the  question  as 
to  the  financial  loss  through  war.  A  nation  economizes  in  war 
times.  At  the  close  of  1914  the  Bank  of  England  had  nearly 
$900,000,000  on  deposit,  against  an  average  of  about  $300,- 
000,000  before  the  war.  If  the  European  war  costs  $1,000,- 
000,000  a  month,  as  estimated,  and  the  population  of  the  war- 
ring countries  is  450,000,000,  the  cost  is  about  $2.10  per  month 
per  person,  and  Europe  can  economize  more  than  that  and  not 
seriously  feel  the  financial  sacrifice.  Indeed,  it  may  learn 
valuable  lessons  of  economy  by  so  doing.  These  arguments 
are  mentioned  in  the  spirit  of  fairness,  and  not  because  it  is 
believed  to  be  a  good  thing  to  put  money  into  powder,  or  for 
Europe  to  be  forced  to  economize  $2.10  per  month,  per  person. 
Similarly,  there  is  some  argument  for  military  training  on  the 
score  of  health  and  discipline,  of  discontent  with  a  life  of  in- 
dulgence, and  so  on,  all  of  which  must  be  recognized,  although 
insignificant  in  comparison  with  the  tremendous  loss  and  waste 
which  a  study  of  military  expenses  shows.  On  the  other  hand, 
there  are  many  losses  caused  by  the  present  European  war 
that  we  have  no  means  of  measuring  and  cannot  include  in 
sets  of  problems.  A  factory  may  have  a  hundred  employees, 
all  but  twenty  being  above  the  age  limit  of  military  service; 
but  these  twenty  may  include  all  who  are  trained  to  do  a  special 
line  of  work  in  the  factory,  and  their  absence  may  result  in 
closing  the  concern  and  throwing  all  the  others  out  of  employ- 
ment. In  one  locality  the  flour  mills  may  thus  be  shut  down ; 
in  another,  the  mines ;  in  another  the  machine  shops,  and  so  on, 
the  damage  arising  from  the  absence  of  a  few  men  being  entire- 
ly out  of  proportion  to  the  number  of  individuals  who  are 
called  to  arms  from  the  particular  locality. 


It  is  also  necessary  to  admit  the  reasonableness  of  adequate 
preparation  for  national  defence,  but  it  is  believed  that  a  study 
of  problems  like  these  will  bring  the  next  generation  to  weigh 
more  carefully  the  question  of  the  proper  use  of  the  money 
needed  for  such  a  purpose,  and  to  consider  whether  the  world 
is  not  by  this  time  old  enough  to  settle  its  disputes  by  a  resort 
to  arbitration  instead  of  brute  force. 

Special  Purpose  of  these  Problems. — These  problems  are 
sent  to  thousands  of  teachers  and  textbook  writers  through- 
out the  United  States  with  a  special  purpose.  It  is  hoped  that 
teachers  will  use  them  in  their  classes,  always  with  the  due 
moderation  that  will  maintain  the  pupil's  interest  and  cause 
him  to  think  out  the  real  lesson  of  these  statistics.  It  is  also 
hoped  that  textbook  writers  will  consider  the  advisability  of 
using  this  or  similar  material,  always  within  reason,  perhaps 
to  the  extent  of  only  a  problem  or  two,  and  that  school  author- 
ities will  ask  their  teachers  to  frame  occasional  questions  of 
this  nature  and  to  encourage  their  pupils  to  do  likewise.  It  will 
be  seen  that  the  problems  here  given  are  not  controversial  in 
the  slightest  degree ;  they  have  nothing  to  do  with  the  merits 
of  the  present  war  or  of  any  past  war;  they  do  not  enter  into 
the  questions  of  national  defense,  of  pensions,  or  of  adequate 
equipment  of  our  army  and  navy ;  their  sole  purpose  is  the  one 
above  stated — to  cause  the  pupils  to  think  of  their  responsibility 
in  assisting  to  create  a  world-sentiment  in  favor  of  a  wiser  use 
of  money  than  in  mere  armaments. 


THE   PROBLEMS 

THE  COST  OF  WAR 

Problems  Involving  the  Four  Operations   With  Integers. 

1.  In  the  war  of  1870  France  lost  in  killed,  wounded,  and 
prisoners  723,500  officers  and  men  in  eight  months,  and  Ger- 
many lost  129,647.    Find  the  total  loss  of  both  countries,  and 
the  average  loss  per  month  and  per  day. 

In  all  such  cases  take  30  da.  to  the  month. 

2.  In  the  great  wars  from  1790  to  1913  there  were  5,498,- 
097  men  killed.    In  the  United  States  it  is  estimated  that  the 
average  value  of  each  life  (man,  woman,  or  child),  based  upon 
the  value  of  the  annual  products    of  the   country,  is    $2900. 
Taking    the  value  of  these  men,  all  of  them  much  above  the 
average  in  health  and  strength,  although  living  where  human 
life  was  not  economically  so  valuable,  as  $2900,  what  was  the 
financial  cost  to  the  world  in  the  loss  of  all  these  lives? 

3.  If  in  the  great  war  of  1914-1915  there  are  2,500,000 
men  killed,  what  is  the  financial  loss  of  these  human  lives,  on 
the  basis  of  the  average  given  in  Ex.  2? 

4.  Valuing  a  human  life    economically    at    $5000,    what 
would  be  the  loss  by  the  conditions  of  Ex.  3  ? 

5.  It  is  estimated  that  21,200,000  were  engaged  in  the 
great  war  of  1914-1915.    Suppose  each  man  could  produce  $2 
a  day,  on  the  average,  if  he  remained  at  home  and  worked, 
what  is  the  loss  per  day  in  production  by  taking  these  men 
away  from  work  ? 

6.  In  Ex.  5,  what  is  the  loss  per  month?  What  is  the 
loss  per  year? 

7.  The  mere  cost  of  transporting  the  armies  in  the  great 
war  of  1914-1915  was  $2,100,000  a  day.  How  many  poor 
people  could  be  helped  each  day  with  such  an  amount,  allowing 
50c.  a  day  to  each  person  ? 

8.  In  this  war  it  costs  $1,000,000  a  day  to  feed  the  horses 
used  in  the  armies.  How  much  does  this  amount  to  in  a  year? 
At  $500  each,  to  how  many  boys  and  girls  could  be  given  a  year 
in  college  for  this  amount  paid  for  horse  feed  ? 

9 


GUNS  AND  COLLEGES 
Problems  Involving  Multiplication   and   Division. 

1.  Five  superdreadnoughts  of  the  Queen  Elizabeth  type 
are  put  in  commission  by  Great  Britain  in  1915.  The  powder 
used  in  firing  a  single  shot  from  one  of  the  eight  15-inch  guns 
costs  $750.  How  much  will  it  cost,  for  powder  alone,  to  fire 
one  round  of  the  eight  guns  on  a  single  ship  ?  How  much  will 
it  cost  for  the  five  ships  ? 

2.  The  average  annual  tuition  for  a  student  in  a  certain 
college  or  university  is  $150.  The  mere  powder  required  for 
a  single  round  of  shots  from  the  five  superdreadnoughts  in 
Ex.  1  would  pay  the  tuition  of  how  many  students  for  a  year? 
Answer  to  the  nearest  unit  in  all  such  cases. 

3.  The  cost  of  each  of  the  15-inch  guns  mentioned  in  Ex.  1 
is  $80,000.     How  much  did  the  guns  for  the  five  superdread- 
noughts cost? 

4.  A  student's  necessary  living  expenses  in  college  aver- 
ages $250  a  year.    The  cost  of  the  large  guns  for  the  five  ships 
mentioned  in  Exs.  1  and  3  would  pay  the  living  expenses  of 
how  many  college  students  for  a  year  ? 

5.  If  all  the  five  ships  mentioned  in  Ex.   1   should  fire 
100  rounds  during  the  year  1915,  the  mere  powder  consumed 
would  cost  how  much  ? 

o.  The  total  annual  income  of  a  certain  state  university 
is  $310,000.  The  powder  mentioned  in  Ex.  5  would  provide 
the  annual  income  of  this  university  for  how  many  years? 

7.  A  first-class  battleship,  fully  equipped,  will  cost  next 
year  about  $15,000,000.     Such  an  amount  would  build  and 
equip  trade-schools,  at  $75,000  each,  in  how  many  cities  ? 

8.  The  sum  mentioned  in  Ex.  7,  as  the  cost  of  a  battleship, 
would  send  how  many  boys  or  girls  through  a  business  college, 
allowing  $1,500  to  each  student? 

9.  It  is  proposed  to  build  a  series  of  forts  and  equip  them 
with  modern  guns  to  defend  one  of  our  seaports.    The  expense 
is  estimated  at  $2,500,000.    Such  a  sum  would  pay  the  expenses 
of  how  many  boys  next  year  in  a  good  school  of  technology, 
allowing  $500  for  each  boy  ? 

Such  a  problem  is  not  intended  to  show  that  adequate  defence 
is  not  a  wise  precaution.  It  is  simply  intended  to  call  attention  to 
the  amount  of  money  that  is  being  expended  because  the  world  will 
not  agree  to  settle  disputes  in  a  rational  manner. 

10.  To  fire  some  of  the  guns  in  modern  ships  costs  $1,200 
for  each  shot,  including  all  charges.     If  such  a  gun  is  fired 
once  in  three  minutes  for  an  hour  a  day  on  each  of  the  seven 
days  of  a  week,  the  expense  is  how  much?     This  sum  would 
pay  your  expenses  in  college,  at  $500  a  year,  for  four  years, 
and  the  expenses  of  how  many  of  your  friends  at  the  same 
rate? 

10 


WAR  EXPENSES  AND  OUR  PLEASURES 
Problems  Involving  Long  Division, 

1.  There  are  300,000  Boy  Scouts  in  America,  and  $30  on 
an  average  would  give  each  of  them  a  camping  trip  and  a  scout 
suit  this  year.    We  spent  on  our  War  Department  $173,522,- 
804  last  year.    This  amount  would  pay  these  expenses  of  the 
Boy  Scouts  for  how  many  years? 

In  all  such  cases  answer  to  the  nearest  year  or  other  unit. 

2.  Most  boys  would  like  to  go  to  a  ball  game  every  week. 
If  a  boy  went  to  a  game  every  week  for  a  season  of  twenty 
weeks,  and  took  a  50c.  seat,  how  much  would  it  cost  for  the 
season?    The  amount  which  we  spent  on  our  navy  last  year, 
$139,682,186,  would  pay  for  tickets  for  how  many  boys? 

3.  A  Camp-Fire  Girl  can,  for  $35,  buy  her  suit  and  pay 
for  a  camping  trip  in  the  summer.    The  $173,522,804  which  our 
Government  spent  last  year  on  the  War  Department  would 
pay  these  expenses  for  how  many  girls? 

4.  A  good  tennis  racket  can  be  bought  for  $1.50.     The 
battleship  Vermont  cost  $7,563,963.    This  amount  would  buy 
rackets  for  how  many  boys  and  girls? 

5.  A  baseball  suit  can  be  bought  for  $4.50.     The  battle- 
ship Virginia  cost  $6,703,614.     This  amount  would  buy  suits 
for  how  many  boys? 

6.  A  ticket  to  some  good  entertainment  costs  on  the  aver- 
age 25c.    The  battleship  South  Carolina  cost  $5,097,355.    This 
amount  would  buy  tickets  for  how  many  boys  and  girls? 

7.  A  good  bicycle  can  be  bought  for  $25.    The  battleship 
Oregon  cost  $6,575,032.    This  amount  would  buy  bicycles  for 
how  many  boys  and  girls  ? 

8.  Before  the  great  war  began,  Europe  owed  $27,000,- 
000,000   for  old  war  debts.     If  we  can  imagine  such  a  sum 
divided  equally  among  the  90,000,000  families  of  Europe,  and 
devoted  to  pleasure,  how  much   would  be  allowed  to  each 
family? 

9.  During  the  year  preceding  the  great  war,  the  five  great 
European  powers  spent  $898,921,000  on  their  armies.    At  lOc. 
per  ticket,  how  many  tickets  to  some  good  moving-picture  plays 
would  such  an  amount  buy  for  each  of  the  450,000,000  people 
in  these  countries  ?    Answer  to  the  nearest  unit. 

10.  In  the  year  mentioned  in  Ex.  9,  the  same  powers  spent 
$619,511,000  on  their  navies.    Such  an  amount  would  buy  how 
many  tickets  per  person  as  stated  in  Ex.  9  ? 

It  is  hoped  that  such  -xamples,  relating  to  the  immediate 
interests  of  the  pupils,  may  furnish  means  for  giving  them 
some  idea  of  the  vastncss  of  expenditure  for  armaments.  It  is 
not  intended  to  suggest  that  the  money  spent  for  war  would 
tDtherwise  be  spent  for  pleasure,  but  to  offer  familiar  standards 
of  measure  to  allow  our  youth  to  appreciate  the  size  of  num- 
bers represented  by  these  "endless  caravans  of  figures." 

11 


BATTLESHIPS  AND  SCHOOLS 
Problems  Involving  Long  Division. 

1.  The  battleship  Alabama  cost  $4,665,820.     In  1913  the 
total  receipts  of  Alabama  for  higher  education  amounted  to 
$533,659.     The  cost  of  this  single  battleship  would  have  kept 
Alabama  in  funds  for  her  colleges,  universities,  and  schools  of 
technology  for  how  many  years  ?    Answer  to  the  nearest  year. 

2.  The  battleship  Arizona  is  estimated  to  cost  $7,425,500. 
In  1913  the  total  amount  expended  for  common  schools  by 
the  state  of  Arizona  was  $1,321,631.    The  cost  of  this  single 
battleship  would  have  paid  for  all    the    common    schools  of 
Arizona  for  how  many  years  ?    Answer  to  the  nearest  year. 

3.  The  battleship  Arkansas  cost  $4,675,000.     The  total 
value  of  buildings  for  colleges,  universities,  and  technological 
schools  in  Arkansas  (1913)  is  $654,500.   The  cost  of  this  single 
battleship  would  pay  for  how  many  times  as  many  such  build- 
ings for  this  state? 

4.  The  battleship  Connecticut  cost  $7,911,175.     It  is  esti- 
mated that  the  average  cost  of  education  of  a  pupil  in  the 
common  schools  of  Connecticut  is  $39.92  per  year.     The  cost 
of  this  single  battleship  would  pay  for  the  education  of  how 
many  pupils  for  a  year?    It  would  pay  for  the  education  of 
how  many  pupils  for  ten  years?    Answer  to  the  nearest  unit. 

5.  The   battleship    Delaware   cost    $5,705,757.      This    is 
how  many  times  the  total  value  ($1,600,000)  of  all  the  public 
property   used    for   common   school   purposes   in   Delaware? 
Answer  to  the  nearest  unit. 

6.  The   battleship   Florida   cost    $6,400,000.       In     1912 
Florida  received  for  permanent  endowments  for  her  univer- 
sities, colleges,  and  technological  schools  $1000.    It  would  take 
the  endowments  for  how  many  years,  at  this  rate,  to  pay  for 
this  one  battleship? 

7.  The  battleship  Wyoming  cost  $4,450,000.    The  total  in- 
come of  the  University  of  Wyoming  in  a  recent  year  was 
$243,639.     The  cost  of  this  single  battleship  would  pay  this 
total  income  for  how  many  years  ?    Answer  to  the  nearest  unit. 

8.  The  battleship  Vermont  cost  $7,563,963.    It  is  estimated 
that  the  average  cost  of  education  of  a  pupil  in  the  common 
schools  of  Vermont  is  $34.80  per  year.    The  cost  of  this  single 
battleship  would  pay  for  the  education  of  how  many  pupils  for 
a  year?    It  would  pay  for  the  education  of  how  many  pupils 
for  the  eight  years  of  the  elementary  school?    Answer  to  the 
nearest  unit. 

We  have  a  number  of  battleships  which  we  have  named  after 
our  states.  Such  ships  are  necessarily  expensive,  and  we  feel 
that  this  expense  is  justified  because  of  the  protection  we  re- 
ceive. If  it  were  not  for  wars  we  might  use  this  money  to 
better  purpose,  and  the  object  of  these  problems  is  to  compare  the 
expenditure  for  ships  with  the  expenditure  for  schools. 

12 


THE  FINANCIAL  COST  OF  WAR 
Problems  Involving  Decimal  Fractions 

1.  The  Franco- German  war  of  1870  lasted  eight  months 
and  cost  France,  in  expenses,  indemnity  paid  to  Germany  and 
loss  of  territory,  18,000,000,000  fr.     At  19.3c.  to  the  franc, 
how  many  dollars  does  this  represent?     How  many  dollars 
for  each  month  of  the  war  ?    How  many  dollars  a  day  ? 

2.  The  war  mentioned  in  Ex.  1  cost  Germany  2,111,000,- 
000  marks.     At  23. 8c.  to  the  mark,  how  many  dollars  does 
this  represent?     How  many  dollars  a  month?     How  many 
dollars  a  day? 

3.  The   South    African    war  of    1899-1902    cost  Great 
Britain  ^211,156,000.    At  $4.866  to  the  pound,  how  many  dol- 
lars does  this  represent? 

4.  To  fire  a  single  shot  from  each  of  the  big  15-inch  guns 
of   England's  superdreadnought    the  Queen    Elizabeth  costs 
;£200,  and  each  of  the  eight  big  guns  can  fire  three  shots  a 
minute.    Suppose  all  eight  guns  were  fired  for  a  single  minute 
as  rapidly  as  possible,  and  that  we  take  the  value  of  the  pound 
as  stated  in  Ex.  3,  what  would  be  the  financial  cost  ?    At  $600  a 
year,  how  many  young  men  or  women  could  be  kept  in  college 
next  year  for  the  money  spent  in  thus  firing  these  guns  for 
ten  minutes? 

5.  If  Great  Britain  had  five  superdreadnoughts  of  the  type 
mentioned  in  Ex.  4  firing  only  their  15-inch  guns  for  a  single 
hour,  the  cost  would  pay  one  year's  tuition  at  $150  of  how 
many  students  in  college? 

It  must,  be  understood  that  these  ships  do  not  carry  enough 
ammunition  for  such  continuous  firing.  The  figures  are,  how- 
ever, approximately  correct. 

6.  The  Balkan  war  of  1912-1913  cost  Greece  606,250,000 
drachmas.     A  drachma  is  a  Greek  coin  worth  19. 3c.  in  our 
money.    Find  in  our  money  the  financial  burden  which  this  war 
placed  upon  Greece. 

7.  The  war  mentioned  in  Ex.  6  cost  Serbia  1,212,500,000 
dinars.    A  dinar  is  a  Serbian  coin  worth  19. 3c.  in  our  money. 
Find  in  our  money  the  amount  which  Serbia  was  compelled  to 
pay  for  the  war. 

8.  The  war  mentioned  in  Ex.  6  cost  Turkey  8,800,000,000 
piastres.    A  piastre  is  a  Turkish  coin  worth  4.4c.  in  our  money. 
Fina  in  our  money  the  amount  which  Turkey  paid  for  her  ex- 
penses in  the  war. 

9.  In   the  year   preceding   the  great  war  Russia  spent 
617,000,000  rubles  on  her  army.     A  ruble  is  a  Russian  coin 
worth  51.5c.  in  our  money.     Find  in  our  money  the  amount 
which  Russia  spent  on  her  army  in  that  year. 

13 


'S  SUBSEQUENT  FINANCIAL  BURDENS 
Problems  Involving  Percentage. 

1.  In  1866  we  were  paying  $15,000,000  a  year  in  pensions. 
In  1881  we  were  paying  $56,000,000.     What  was  the  per  cent 
of  increase? 

2.  In  1890  we  were  paying  $86,000,000.     What  was  the 
per  cent  of  increase  over  1866  ?  over  1881  ? 

3.  In  1913  we  were  paying  $177,000,000.     What  was  the 
per  cent  of  increase  over  1866?    What  was  the  per  cent  of  in- 
crease over  1881?    What  was  the  per  cent  of  increase  over 
1890? 

4.  In  1914  it  cost  our  government  $2,000,000  simply  to 
pay  its  pensions  and  keep  up  the  Pension  Bureau.    The  amount 
paid  in  pensions  in  that  year  was  $172,400,000.     What  per 
cent  of  the  total  amount  of  pensions  and  expenses,   to  the 
nearest  tenth  per  cent  was  used  for  expenses? 

5.  Up  to  June  30,  1914,  our  government  had  paid  as  pen- 
sions the  following  amounts:   war  of  the  Revolution,  $70,- 
000,000;   war   of    1812,   $46,000,000;   Indian   wars,  $13,000,- 
000;  Mexican  war,     $49,000,000;  Civil  war,  $4,458,000,000; 
Spanish  war  and  Philippine  insurrections,  $46,000,000 ;  other 
items,  $49,000,000.     Find  the  total  amount  paid  for  pensions, 
and  find  what  per  cent  of  this,  to  the  nearest  tenth,  went  for  the 
civil  war. 

6.  The  annual  expenditures  of  our  government,  exclusive 
of  the  post  office,  which  is  practically  self-supporting,  are  about 
$750,000,000.     Of  this  amount  $174,000,000  goes  for  military 
pensions.     Our  pensions  are  what  per  cent  of  our  total  ex- 
penses ? 

7.  Referring  to  Ex.  6,  we  pay  $450,000,000  a  year  for 
our  army,  our  navy,  and  our  pensions, — all  war  expenses  while 
we  are  at  peace  with  all  nations.    What  per  cent  of  our  total 
expenses  go  for  these  purposes? 

8.  In   1800  our  country  paid  $64,131   for  pensions.     In 
1914  we  paid  $173,092,065.    The  amount  paid  in  1800  was  what 
per  cent  of  the  amount  paid  in  1914? 

9.  In  1914  we  had  785,239  persons  in  the  United  States 
drawing  war  pensions.     Taking  our  population  as  98,646,491 
in  that  year,  what  per  cent  of  our  population  was  on  the  pen- 
sion roll  ?    Answer  to  the  nearest  tenth  per  cent. 

After  a  war  closes  it  is  the  laudable  custom  in  most  countries 
to  pay  pensions  to  those  soldiers  who  were  disabled  while  in 
service.  Our  nation  is  more  liberal  than  others  in  this  respect. 
The  above  problems  are  based  upon  our  pension  system 
and  are  intended  to  show  one  of  the  financial  burdens  of  war, 
and  not  to  touch  in  any  way  upon  the  merits  of  the  system. 
Indeed,  it  is  the  duty  of  the  schools  to  encourage  the  legitimate 
recognition  of  the  services  of  those  who  have  fought  for  the 
country. 

14 


THE  FINANCIAL  WAR  PROBLEMS  OF  NATIONS 
Problems  Involving  Percentage. 

1.  At  the  outbreak  of  the  Russo-Japanese  war  of  1904-5, 
the  national  debt  of  Japan  was  600,000,000  yen.    After  the  war 
was  over,  although  Japan  was  victorious,  the  national  debt  was 
2,260,000,000  yen.     By  what  per  cent  did  the  war  increase 
the  national  debt? 

It  should  be  observed  that  it  is  not  necessary  to  know  the  value 
of  the  yen  in  our  money.  If  it  is  desired  to  translate  the  above 
figures  into  dollars,  it  may  be  stated  that  a  yen  is  approximately 
equal  to  50c.  (actually  49.8c.)  of  our  money. 

2.  At  the  beginning  of  the  war  mentioned  in  Ex.  1,  the 
national  debt  of  Russia  was  6,630,000,000  rubles,  and  after  the 
war  expenses  had  been  met  it  was  8,836,000,000  rubles.     By 
what  per  cent  did  the  war  increase  the  national  debt  ? 

Here  again,  the  value  of  the  ruble  need  not  be  known  in 
order  to  solve  the  problem.  It  is  approximately  equal  to  50c. 
(actually  51. 5c.)  of  our  money.  By  Exs.  1  and  2  we  see  that 
the  victorious  nation  may  suffer  financially  more  than  the  un- 
successful one. 

3.  The  Balkan  wars    of   1012-1913  cost    $2,100,000,000. 
The  population  of  Bulgaria  is  4,755,000 ;  of  Roumania,  7,520,- 
000  ;  of  Serbia,  4,600,000  ;  of  Albania,  825,000  ;  of  Montenegro, 
520,000.    Find  the  cost  per  capita  for  these  Balkan  states. 

Of  course  other  states  were  involved,  but  the  problem  is 
intended  to  show  the  great  financial  cost  in  comparison  with  the 
population  of  the  countries  chiefly  concerned. 

4.  In  particular,- the  wars  referred  to  in  Ex.  3  cost  Bul- 
garia $436,500,000.    Find  the  per  capita  cost  for  that  country. 

5.  Comparing  Exs.  3  and  4,  the  per  capita  cost  for  Bul- 
garia was  what  per  cent  of  the  per  capita  cost  for  all  the  Balkan 
states? 

6.  One  of  the  most  expensive  wars  of  the  world  was  our 
own  civil  war  of  1861-1865.    The  cost  is  estimated  at  $5,000,- 
000,000,  while  the  cost  of  our  war  with  Spain  is  estimated  at 
23.3%  as  much.    How  much  did  these  two  wars  cost? 

7.  The  Transvaal  War  of  1900-1901  is  estimated  to  have 
cost  £200,020,000,  and  the  war  between  Italy  and  Turkey,  in 
1911,  to  have  cost  70%  as  much.    At  $4.866  to  the  pound,  find 
the  cost  of  each  of  these  wars  in  our  money. 

8.  Before  the  great  war  of  1914-1915,  the  national  debt 
of  the  United  Kingdom  (Great  Britain  and  Ireland),  largely 
due  to  war,  was  $3,485,818,000,  and  the  entire  wealth  of  the 
country  was  estimated  at  $85,000,000,000.    The  debt  was  what 
per  cent  of  the  total  wealth?    Answer  here  and  in  Ex.  9  to  the 
nearest  tenth  per  cent. 

9.  As  in  Ex.  8,  the  national  debt  of  France  was  $6,346,- 
129,000,  also  largely  due  to  war,  and  the  entire  wealth  of  the 
country  was  estimated  at  $50,000,000,000.    The  debt  was  what 
per  cent  of  the  total  wealth  ? 

15 


THE  HUMAN  SACRIFICE  OF  WAR 
Problems  Involving  Percentage. 

1.  In  the  war  between  France  and  England  from  1793  to 
1815,  out  of  3,000,000  men  engaged    1,900,000  were    killed. 
Find  the  per  cent  of  deaths. 

2.  In  the  European   wars  of   1854-1856,  1,460,500  men 
were  engaged  and  41.7%  were  killed.     Find,  to  the  nearest 
thousand,  the  number  killed. 

3.  In  the  Civil  War  of  the  United  States,  404,400  men 
were  killed.     This  was  17.8%  of    the  total   number  engaged. 
Find,  to  the  nearest  thousand,  the  number  of  men  engaged. 

4.  In  the  Franco-German  war  of  1870-1871  there  were 
1,713,000  men  engaged,  and  311,000  were  killed.     Find  the 
per  cent  of  deaths. 

5.  In  the  war  between  Russia  and  Turkey  in  1876-1877, 
there  were  1,500,000  men  engaged,  of  whom  12%  were  killed. 
How  many  were  killed? 

6.  In  the  Russo-Japanese  war  of  1904-1905  there  were 
555,900  men  killed,  which  was  22.2%  of  the  number  engaged. 
Find,  to  the  nearest  thousand,  the  number  of  men  engaged. 

7.  In  the  great  wars  from  1790  to  1913  there  were  18,- 
552,200  men  engaged,  of  whom  5,498,097  lost  their  lives.  Find 
to  the  nearest  tenth  per  cent  the  per  cent  of  those  who  were 
killed. 

8.  Taking  a  general  average,  let  us  suppose  that  each  man 
killed,  as  stated  in  Ex.  7,  was  the  father  of  two  children.  How 
many  children  were  left  fatherless  by  these  wars  ? 

9.  Instead  of  making  the  supposition  of  Ex.  8,  let  us  sup- 
pose that  only  66£%  of  the  men  were  married.     How  many 
women  were  made  widows  by  these  wars? 

10.  In  the  Balkan  wars  of  1912-1913  there  were  1,230,000 
men  engaged  and  350,000  of  these  lost  their  lives,  whereas  in 
the  Russo-Japanese  war  of  1904-1905  there  were  2,500,000  men 
engaged,  of  whom  555,900  lost  their  lives.    In  which  war  was 
the  per  cent  of  loss  the  greater  ?    State  the  per  cent  of  loss  in 
each  case. 

11.  It  is  estimated  that  in  the  present  great  war  there  are 
21,200,000  men  engaged.    If  the  per  cent  of  loss  of  life  should 
be  the  same  as  that  in  the  Balkan  wars  (see  Ex.  10)  what 
number  of  men  would  be  killed. 

It  should  be  stated  that  examples  like  Exs.  3  and  6  are  not  to 
be  commended.  We  seldom  have  to  find  the  number  of  men 
engaged,  for  this  number  is  usually  known.  It  is  also  open 
to  question  whether  the  attempt  to  draw  a  moral  by  such 
hypothetical  cases  as  Exs.  8  and  9  is  warranted.  If  the  facts 
were  really  known  the  problems  would  be  justified. 

16 


COST  OF  SAVING  AND  OF  DESTROYING  HUMAN  LIFE 
Problems  Involving  a  Knowledge  of  Simple  Interest. 

1.  Pittsburg  recently  spent  $7,000,000  on   purifying  its 
water  supply.    It  is  estimated  that  300  lives  a  year  will  be  saved 
by  having  pure  water,  and  that  these  lives  are  worth,  on  an 
average,  $5000  to  the  city  and  country.      How    much  is  the 
financial  saving  of  human  life? 

2.  If  Pittsburg  borrowed  the  $7,000,000  at  ±1A%>  how 
much  would  the  average  charge  be  per  year  ? 

3.  The  expenditures  for  2,000,000  shrapnel  shells  at  $18 
each   which  a   certain  European  government  placed   in  one 
order  in  1915,  was  how  many  times  the  annual  interest  charge 
found  in  Ex.  2  ?    It  was  how  many  times  the  entire  charge  of 
the  purifying  plant  mentioned  in  Ex.  1?    Answer  to  the  near- 
est tenth  in  each  case. 

4.  The  death  rate  of  infants  in  a  certain  English  town  was 
recently  reduced  one-third  at  the  average  expense  of  $20  per 
child  saved.    The  mere  cost  of  ten  shrapnel  shells  at  the  rate 
mentioned  in  Ex.  3  would  pay  for  the  saving  of  how  many 
children's  lives  at  this  rate  ? 

5.  At  5%  the  interest  on  the  cost  of  a  single  battleship  like 
the    Pennsylvania     ($13,000,000)      would    save    how    many 
children's  lives  at  the  figures  given  in  Ex.  4  ? 

6.  In  Germany  it  costs  on  the  average  2310  marks  to  rear 
a  child  from  birth  to  the  age  of    20  years.    At   23.8c.  to  the 
mark,  how  much  is  this  in  our  money?     At  6%  the   interest 
for  20  years  on  a  battleship  costing  $9,500,000  would  pay  for 
the  rearing  of  how  many  children  in  that  period? 

7.  The  United  States  government  pays  for  the  promotion 
of  public  health  $4,425,188  in  the  year  ending  June  30,  1916. 
At  2%%,  a  fair  rate  of  interest  for  the  government,  this  is  how 
much  less  than  the  mere  interest  on  the  $459,071,803  that  we 
spend  this  year  for  war  purposes? 

8.  The  battleship  South  Carolina  cost  $5,097,355.     Last 
year  the  state  of  South  Carolina  appropriated  $42,220  for  pub- 
lic health.    One  year's  interest  on  the  cost  of  the  battleship,  at 
5%,  would  pay  the  amount  appropriated  for  public  health  for 
how  many  years  ? 

9.  The  mere  hull  and  machinery  of  the  battleship  Okla- 
homa cost  $5,926,000.    Last  year  the  state  of  Oklahoma  appro- 
priated $32,700  for  public  health.    The  interest  on  the  cost  of 
the  battleship,  at  5%,  would  allow  this  appropriation  to  be  in- 
creased how  much? 

10.  The  battleship  Kansas  cost  $7,565,620.    Last  year  the 
state  of  Kansas  appropriated  $30,500  for  public  health.    This 
represents,  to  the  nearest  tenth  per  cent,  the  interest  on  the  cost 
of  the  battleship  at  what  rate?  c 

17 


BATTLESHIPS  AND  TEACHERS 
Problems  Involving  a  Knowledge   of  Simple  Interest. 

1.  The  battleship  Georgia  cost  $6,543,531.     The  average 
monthly  salary  of  a  teacher  in  Georgia  is  $45.54.     The  mere 
interest  on  the  cost  of  this  battleship  at  6%  would  pay  the 
salary  of  a  teacher  for  how  many  years  of  9  months  each  ? 

2.  The  battleship  Illinois  cost  $4,621,408.     The  average 
monthly  salary  of  a  teacher  in  Illinois  is  $73.05.    The  interest 
on  the  cost  of  this  battleship  at  6%  would  pay  the  salaries  of 
how  many  teachers  for  a  month? 

3.  The  battleship  Indiana  cost  $5,983,371.     The  average 
monthly  salary  of  a  teacher  in  Indiana  is  $66.01.     The  interest 
on  the  cost  of  this  battleship  at  5%  would  pay  the  salaries  of 
how  many  teachers  for  the  year  in  which  the  interest  is  paid  ? 

4.  The  battleship  Iowa  cost  $5,871,206.    How  much  would 
the  simple  interest  on  this  sum  amount  to  in  the  15  yr.  of  the 
life  of  the  ship?     The  average  monthly  salary  of  a  teacher 
in  Iowa  is  $51.67.    This  interest,  plus  the  cost  of  the  ship,  which 
is  then  out  of  date,  would  pay  the  salaries  of  how  many  teach- 
ers 9  mo.  in  each  year  for  the  15  yr.  ? 

5.  The  battleship  Kansas  cost  $7,565,620.     In  1913  the 
state  of  Kansas  received  from  the  United  States  government 
$80,000  for  higher  education.    The  interest  on  the  cost  of  the 
battleship,  at  6%,  would  have  allowed  this  amount  to  be  how 
many  times  as  great? 

6.  The  battleship  Kentucky  cost  $4,998,119.     In  1913  the 
state  of  Kentucky  received   from  the  United  States  govern- 
ment $72,750  for  higher  education.     The  interest  for  a  single 
year  on  the  cost  of  the  battleship,  at  5%,  would  have  paid  this 
sum  for  how  many  years  ? 


7.  The  battleship  Louisiana  cost  $7,425,613.    The  average 
monthly  salary  of  a  teacher  in  Louisiana  is  $55.51.     The  in- 
terest on  the  cost  of  this  battleship  for  a  single  month,  at  6% 
would  pay  the  salaries  of  how  many  teachers? 

8.  The  battleship   Maine  cost  $5,381,903.     The  average 
annual  salary  of  a  teacher  in  the  common  schools  of  Maine  is 
$450.    The  interest  on  the  cost  of  this  battleship,  at  6%,  would 
pay  the  salaries  of  how  many  teachers? 

9.  The    battleship    Massachusetts,    built    in    1891,    cost 
$6,047,117,  and  is  now  obsolete.     Suppose,  instead  of  putting 
the  money  into  this  battleship,  it  had  been  placed  at  simple  in- 
terest at  5%.    The  money  would  still  be  unspent,  and  it  would 
have  accumulated  how  much  interest  from  the  time  the  ship 
was  built  to  the,  year  1915? 

18 


COST  OF  SAVING  LIFE  AND  COST  OF  DESTROYING  LIFE 
Problems  Involving  Simple  Interest. 

1.  The  battleship  New  York  cost,  for  hull  and  machinery 
alone,    $6,400,000.      This     year    New    York    State    spends 
$257,1)40  on  the  department  of  health.     How  does  the  mere 
interest  on  this  part  of  the  total  cost  of  the  battleship,  at 
41A%,  compare  with  the  amount  devoted  to  public  health? 

This  is  the  regular  appropriation  of  New  York  for  1914-1915, 
and  similarly  in  the  following  examples. 

2.  The  battleship  Illinois  cost  $4,621,408.  This  year  Illi- 
nois spends  $112,115  on  the  department  of  health.    If,  instead 
of   putting  this   amount   into   this   battleship,   which   is   now 
nearly  obsolete,  the  same  amount  had  been  put  at  interest 
at  4J/2%,   how   long  could   this   department   of   health   have 
been  maintained  at  its  present  expense?    What  annual  income 
would  result  indefinitely  at  this  rate  of  interest? 

It  should  be  stated  in  fairness  to  the  pupils  that  Illinois 
did  not  pay  for  this  ship  directly,  and  that  if  the  money  had 
not  been  put  into  building  the  ship  it  would  not  have  been  given 
to  Illinois  for  purposes  of  public  health.  On  the  other  hand, 
the  $4,621,408  represents  but  a  fraction  of  the  total  cost  of  the 
ship  since  it  was  built  (1897),  and  the  ship  is  nearly  worthless 
at  present.  Similar  considerations  apply  to  many  of  these  ex- 
amples. All  that  these  problems  seek  to  show  is  that  it  is  a 
pity  that  -the  world  cannot  find  a  better  plan  for  ensuring  peace 
than  by  spending  these  vast  amounts. 

3.  The  hull  and  machinery  alone  of  the  battleship  Michi- 
gan cost  $3,585,000.    This  year  Michigan  spends  $39,000  on  the 
department  of   health.     At   4%   the   interest  on   this   partial 
cost  of  the  battleship  would  increase  the  appropriation   for 
health  by  how  much,  besides  continuing  it  indefinitely  with  no 
further  expense? 

4.  The  battleship  Texas,  with  full  equipment,  cost  about 
$12,500,000.     This  year  Texas  spends  $48,200  on  the  depart- 
ment of  health.     The   interest  on  the  cost  of  the  battleship 
would  enable  Texas  to  spend  how  many  times  this  amount 
for  public  health  forever  ? 

5.  The  United  States  Life-Saving  Service  cost  our  Gov- 
ernment  $2,309,317    last   year,    and   cared    for    29,000    ship- 
wrecked persons.    In  the  same  year  we  spent  $173,522,804  on 
our  army,  $139,682,186   on   our  navy,   and  $173,440,231   on 
pensions,  all  these  being  expenses  due  to  war  or  fear  of  war. 
The  amount  devoted  to  our  Life-Saving  Service   was  how 
much  less  than  the  interest  on  the  sum  of  these  war  expenses 
at  2%,  which  is  about  the  rate  that  our  Government  has  to 
pay? 

Teachers  should  encourage  the  pupils  to  find  the  amount 
spent  locally,  where  they  live,  for  the  purposes  of  public  health, 
and  to  make  up  problems  similar  to  Ex.  5,  based  on  this  in- 
formation. 

19 


THE  COST  OF  WAR 
Problems  Involving  Stocks  and  Bonds. 

1.  Countries  borrow  money  for  public  buildings  and  other 
permanent  improvements,  issuing  bonds  and  usually  paying  a 
certain  amount  from  year  to  year.    Before  the  great  war  the 
per  capita  debt  of  Great  Britain  was  $72 ;  of  Germany,  $18 ;  of 
France,  $166 ;  of  Belgium,  $97 ;  of  Austria-Hungary,  $48 ;  of 
Russia,  $21;  and  of  Serbia,  $44.     On  January  1,  1915,  this 
had  increased  so  that  the  debt  of  Great  Britain  was  $106  per 
capita ;  of  Germany,  $57 ;  of  France,  $212 ;  of  Belgium,  $114 ; 
of  Austria-Hungary,  $83 ;  of  Russia,  $36 ;  and  of  Serbia,  $88. 
Find  the  per  cent,  of  increase  for  each  country  for  the  first 
five  months  of  the  war  (August  to  January). 

By  per  capita  debt  is  meant  the  average  which  each  man, 
woman,  and  child  in  a  country  would  have  to  pay  to  cancel 
the  whole  debt. 

2.  To  carry  on  the  first  five  months  of  the  great  war, 
Great    Britain     had     to      borrow     $1,560,000,000;     France, 
$1,815,000,000;     Germany,     $2,600,000,000;  Belgium,     $130,- 
000,000 ;    Austria-Hungary,    $1,815,000,000 ;   Russia  ,  $2,600,- 
000,000 ;  and  Serbia,  $130,000,000.    How  much  was  borrowed 
by  these  seven  countries?     How  much  did  this  average  per 
month  ? 

3.  The  daily  cost  of  the  great  war  is  estimated  at  $50,- 
000,000.    At  this  rate,  how  much  will  it  amount  to  in  the  year 
from  August  2,  1914  to  August  2,  1915? 

4.  If  the  countries  borrow  the  money  mentioned  in  Ex.  3, 
and  pay  on  an  average  5%  interest  on  their  indebtedness,  the 
interest  alone  will  amount  to  how  much  per  year? 

5.  Largely  as  a  result  of  wars  or  appropriations  for  war, 
England  had,  before  the  war  began,  a  debt  of  $3,305,000,000  ; 
Germany,  $1,200,000,000;  France,   $6,575,000,000;    Belgium. 
$740,000,000;  Austria-Hungary,  $8,450,000,000;  Russia,  $4,- 
450,000,000;  and  Serbia,  $130,000,000.     From  these  figures 
and  those  in  Ex.  2,  compute  the  debts  of  these  countries  after 
five  months  of  war. 

6.  Before  the  war,  Belgium's  3%  bonds  were  quoted  at 
96,  and  Germany's  3%  bonds  at  82.    What  was  the  actual  rate 
of  interest  which  each  of  these  countries,  the  former  with  no 
well-trained  army,  and  the  latter  with  a  remarkable  military 
organization,  have  to  pay  ? 

7.  Before  the  war,  Norway's  3l/2%  bonds  were  quoted  at 
102,  and  Russia's  at  81.    What  was  the  actual  rate  of  interest 
which  each  of  these  countries,  the  former  giving  little  attention 
to  war,  and  the  latter  well  equipped,  had  to  pay? 

The  object  of  Exs.  6  and  7  is  to  show  that  the  credit  of  a 
country  in  the  money  markets  of  the  world  is  not  proportional 
to  the  attention  paid  to  armaments. 

20 


LOSSES  OCCASIONED  BY  RUMORS  OF  WAR 
Problems  Involving  a  Knowledge  of  Stocks  and  Bonds. 

1.  Between  July  22  and  July  30,  1914,  the  prices  of 
British  2^%  bonds  declined  from  75£  to  70.  What  was  the 
actual  rate  of  interest  on  the  money  borrowed  at  each  of 
these  quotations?  If  Great  Britain  needed  to  borrow  more 
money,  which  she  and  most  European  countries  did,  would 
she  be  actually  paying  more  interest,  or  less  interest? 

The  great  European  War  began  in  August,  1914.  Rumors 
of  war  had  been  heard  some  days  before  war  was  actually  de- 
clared. Between  July  22  and  July  30  all  European  and  Ameri- 
can stock  exchanges  felt  the  serious  effects  of  these  rumors. 
The  examples  on  this  page  relate  to  this  period,  and  to  govern- 
ment bonds  or  their  equivalent. 

2.  French  3%  bonds  declined  from  81  to  76|.    If  France 
needed   to  borrow   more   money,    what    interest     would   she 
actually  have  to  pay  at  each  of  these  quotations? 

3.  German  3%   bonds  declined  from  75  to  72.     If  Ger- 
many needed  to  borrpw  more  money,  what  interest  would  she 
actually  have  to  pay  at  each  of  these  quotations? 

4.  Austrian  4%  bonds  de'clined  from  84£  to  76^.     What 
interest  would  Austria  actually  have  to  pay  at  each  of  these 
quotations  ? 

5.  Russian  5%  bonds  declined  from  102^  to  93.     What 
interest  would  Russia  actually  have  to  pay  at  each  of  these 
quotations  ? 

6.  Exs.  1-5  tell  us  something  about  the  relative  financial 
standings  of  the  five  great  powers  at  the  beginning  and  end  of 
the  week  preceding  the  declaration  of  war.     Which  country 
could  borrow  money  at  the  lowest  rate  of  interest  at  the  be- 
ginning of  the  eight  days  ?    Which  could  borrow  money  at  the 
lowest  rate  at  the  end  of  the  eight  days? 

7.  The  market  value  of  the  securities  quoted  on  the  Lon- 
don stock  exchange  fell,  in  the  eight  days  mentioned,  £600,- 
000,000.     That  is,  the  stocks  and  bonds  quoted  on  that  ex- 
change would  sell  for  that  much  less.    At  $4.866  to  the  pound, 
what  was  the  loss  in  value  in  these  securities  alone,  caused  by 
rumors  of  war? 

8.  Let  us  try  to  measure  the  enormous  sum  mentioned  in 
Ex.  7.     Not  counting  leap  years,  but  taking  365  days  to  each 
year,  how  many  days  in  the  1915  years  from  the  beginning  of 
the  Christian  era?     If  this  sum  of  money  were  apportioned 
equally  among  these  days,  each  day  would  represent  how  much 
money  ? 

9.  Let  us  try  to  measure  the  sums  in  Exs.  7  and  8  in 
another  way.    How  much  money  would  each  of  the  2,000  work- 
ing men  in  one  of  our  small  cities,  and  his  successors,  have  to 
earn  a  day  for  1915  years  to  equal  simply  the  losses  on  the 
London  Stock  Exchange  in  the  eight  days  preceding  the  war? 

31 


THE  FINANCIAL  COST  OF  WAR 
Problems  Involving  a  Knowledge   of  Stocks  and  Bonds. 

1.  To  pay  her  great  loss  to  Germany  in  the  war  of  1870, 
France  first  issued  $150,000,000  worth  of  3%  bonds  and  sold 
them  at  60.6%  of  their  par  value.  What  rate  of  interest  did  she 
have  to  pay  on  the  money  actually  received?     How  much  in- 
terest did  she  pay  per  year  on  this  loan? 

2.  France  also  issued  $50,000,000  worth  of  6%  bonds  and 
sold  them  at  85%  of  their  par  value,  and  $400,000,000  worth  of 
5%  bonds  and  sold  them  at  82.5%  of  their  par  value.    On  which 
of  these  loans  did  she  pay  the  higher  rate  of  interest  on  the 
money  actually  received  ?    How  much  interest  did  she  pay  per 
year  on  each  of  these  two  loans?  on  the  two  together? 

3.  To  finance  the  South  African  war  of  1899-1902,  Great 
Britain  was  forced  to  borrow  a  large  amount  of  money  through 
the  sale  of  bonds.    She  sold  £30,000,000  worth  of  2J%  bonds 
at  98|,  £60,000,000  worth  at  9%  and    £32,000,000    worth  at 
93^.    How  much  actual  cash  did  she  receive  from  these  sales, 
how  much  interest  did  she  have.to  pay  a  year,  and  what  was 
the  actual  rate  of  interest  on  the  cash  received? 

The  teacher  should  call  attention  to  the  fact  that  Great  Britain 
sold  her  bonds  first  at  98^2,  then  at  94^,  and  finally  at  93^, 
'her  credit  decreasing  as  the  war  continued.  As  a  matter  of 
fact  her  ^onds  (Consols)  were  selling  at  102^4  when  the  war 
was  declared,  whereas  they  are  now  (1915),  largely  as  a  result 
of  war  and  armament  charges,  selling  at  about  70,  a  tremendous 
shrinkage  "in  values. 

4.  The  loss  occasioned  by  the  war  mentioned  in  Ex.  3, 
also  affected  railway  stocks  in  Great  Britain.     Partly  as  a  re- 
sult these  stocks  declined  £300,000,000  in  value.     Compute  this 
shrinkage  in  dollars,  at  4.866  to  the  pound. 

5.  In  the  Russo-Japanese  war  of   1904-5  Japan  had  to 
borrow  large  sums  by  issuing  government  bonds.     Her  credit 
declined  as  the  war  proceeded,  although  she  was  successful  in 
her  battles.    At  first  (March  1904)  she  sold  her  5%  bonds  for 
95  ;  then  (May  and  October,  1914)  her  second  and  third  issues 
of  5%  bonds  for  92;  then  (February  and  May,  1905)  she  had 
to  issue  6%  bonds  at  90.    Find  the  rate  of  interest  which  she 
had  to  pay  on  the  money  she  actually  received  for  her  bonds  in 
each  of  these  three  cases. 

These  did  not  represent  all  the  loans,  but  they  represent  the 
money  borrowed  at  home,  and  they  show  how  even  a  successful 
war  impairs  the  financial  standing  of  a  country. 

6.  The  world's  annual  armament  bill  in  times  of  peace, 
that  is,  in  the  year  preceding  the  great  war  of  1914,  was  $2,324,- 
067,000.     Let  us  try  to  realize  how  vast  a  sum  this  is.    What 
is  the  population  of  the  place  in  which  you  live?    If  one  fourth 
of   these  persons  are  wage  earners,  and  average  $2  a  day, 
how  much  can  they  earn  in  a  day?     How  many  days  would 
it  take  them  to  earn  this  amount?    How  many  years? 

22 


THE  FINANCIAL  COST  OF  WAR 
Problems  Involving  Ratio  and  Proportion. 

1.  The  South  African  war  began  Oct.  11,  1899,  and  on 
Oct.  20,  1899,  the  British  ministry  estimated  that  it  would  cost 
^10,000,000.     It  turned  out  that  the  ratio  of  estimated  cost 
to  actual  cost  was  substantially  25  :  53.     At  this  ratio,  how 
much  did  the  war  really  cost  ? 

2.  The  Russo-Japanese  war  of  1904-5  cost  Japan  2,030,- 
943,000  yen,  a  yen  being  equal  to  50c.  of  our  money.      The 
amount  charged  to  the  national  debt  (that  is,  the  amount  bor- 
rowed) was  to  the  amount  paid  for  out  of  the  current  revenues 
(that  is,  the  amount  paid  for  as  the  war  went  on)  as  98  : 27. 
Find  the  number  of  dollars  added  to  Japan's  national  debt  by 
this  war  in  which  she  was  successful.     Find  also  the  number 
of  dollars  she  had  to  pay  at  once. 

3.  For  the  year  ending  June  30,  1916,  it  is  estimated  that 
our  country  will  spend  for  army,  navy,  pensions,  and  other 
matters  relating  to  war,  the  sum  of  $459,071,803.     Our  total 
expenditures    for  the  year   are   estimated   as   $1,090,775,134. 
Find  to  the  nearest  hundredth  the  ratio  of  our  war  expenses 
to  our  total  expenditure. 

4.  For  the  year  mentioned  in  Ex.  3  our  war  estimates  are, 
as  stated,  $459,071,803,  and  our  estimated  expenses  for  such 
peaceful    purposes    as    agriculture,    labor,    education,    foreign 
affairs  and  care  of  the  Indians  are  $196,306,267.     Find  to  the 
nearest  hundredth  the  ratio  of  our  peace  expenses  to  our  war 
expenses. 

5.  The  battleship  Pennsylvania,    launched  in    1915,  cost 
$13,000,000.     It  cost  our  country  $211,840  to  pay  our  Presi- 
dent and  Vice-President,  and  to  meet  the  expenses  of  the  ex- 
ecutive offices  of  the  government.     The  cost    of   this  single 
battleship  would  pay  these   expenses   for  how   many  years? 

6.  In  the  year  1914  the  United  States,  at  peace  with  all 
the  world,  with  a  very  small  army  and  a  navy  that  ranked 
only    third    or    fourth    in    the    navies    of    the    world,    spent 
$173,894,143   for  her  army,  $139,893,614  for  her  navy,  and 
$173,092,065  on  pensions.    What  was  the  ratio,  to  the  nearest 
tenth,  of  our  total  war  expenses  to  the  war  expenses  of  Ger- 
many in  1913,  with  the  best-equipped  army  in  the  world,  these 
expenses  being  $312,967,000  ? 

7.  In  Ex.  6,  find  the  ratio  of  our  war  expenses  to  the 
war   expenses   of    England   in    1913,   with   the  best-equipped 
navy  in  the  world,  these  expenses  being  $351,0^1,000. 

8.  In  Ex.  6,  find  the  ratio  of  our  war  expenses  to  the 
war  expenses  of  France  in  1913,  with  a  large  army  and  good- 
sized  navy,  these  expenses  being  $259,349,000. 

Exs.  6-8  show  that  we  spend  a  very  large  amount  in  pro- 
portion to  the  results.  Part  of  this  is  undoubtedly  legitimate, 
for  we  pay  our  workmen,  our  soldiers,  and  our  sailors  better 
than  most  other  countries. 


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Division  of  International  Law 

PAMPHLET  SERIES  B 

1    ARBITRATIONS  AND  DIPLOMATIC  SETTLEMENTS  OF  THE  UNITED  STATES. 

vii-21  p. 
No.    2    LIMITATION  OF  ARMAMENT  ON  THE  GREAT  LAKES.    The  report  of  John 

W.  Foster,  Secretary  of  State,  December  7,  1892.    vii-57  p. 
No.    3    SIGNATURES,   RATIFICATIONS,   ADHESIONS   AND   RESERVATIONS    TO   THE 

CONVENTIONS  AND  DECLARATIONS  OF  THE  FIRST  AND  SECOND  HAGUE 

PEACE  CONFERENCES,     vii-32  p. 
No,    4    THE  HAGUE  CONVENTIONS  OF  1899  (I)  AND  1907  (I)  FOR  THE  PACIFIC 

SETTLEMENT  OF  INTERNATIONAL  DISPUTES,     iv-48  p. 
No.    5    THE  HAGUE  CONVENTIONS  OF  1899   (II)   AND  1907   (IV)   RESPECTING 

THE   LAWS   AND   CUSTOMS   OF    WAR  ON    LAND.      iv-33   p. 

No.    6    THE  HAGUE  CONVENTIONS  OF   1899    (III)    AND   1907    (X)    FOR  THE 

ADAPTATION  TO.  MARITIME  WARFARE  OF  THE  PRINCIPLES  OF  THE 

GENEVA  CONVENTION,    iv-19  p. 
No.    7    THE    HAGUE    DECLARATIONS    OF    1899    (IV,    1)    AND    1907     (XIV) 

PROHIBITING    THE    DISCHARGE    OF    PROJECTILES   AND    EXPLOSIVES 

FROM  BALLOONS,    iv-5  p. 
No.    8    THE  HAGUE  DECLARATION  (IV,  2)  OF  1899  CONCERNING  ASPHYXIATING 

GASES,    iv-2  p. 
No,    9    THE  HAGUE  DECLARATION    (IV,  3)  OF  1899  CONCERNING  EXPANDING 

BULLETS.    iv~2  p. 
No.  10    THE  FINAL  ACTS  OF  THE  FIRST  AND  SECOND  HAGUE  PEACE  CONFERENCES, 

TOGETHER  WITH  THE  DRAFT  CONVENTION  ON  A  JUDICIAL  ARBITRA- 
TION COURT.    iv-40  p. 
No,  11    THE  HAGUE  CONVENTION    (11)^  OF  1907   RESPECTING  THE  LIMITATION 

01    THE  EMPLOYMENT  OF  FORCE  FOR  THE  RECOVERY  OF  CONTRACT 

DEBTS,    iv-7  p. 
No.  12    THE  HAGUE  CONVENTION  (III)  OF  1907  RELATIVE  TO  THE  OPENING  or 

HOSTILITIES,    iv-4  p. 
No.  13    THE  HAGUE  CONVENTION   (V)   OF  1907  RESPECTING  THE  RIGHTS  AND 

DUTIES  OF  NEUTRAL  POWERS  AND  PERSONS  IN  CASE  OF  WAR  ON 

LAND,    iv-8  p. 
No.  14    THE  HAGUE  CONVENTION  (VI)   OF  1907  RELATING  TO  THE  STATUS  OF 

ENEMY    MERCHANT   SHIPS   AT- THE   OUTBREAK    OF    HOSTILITIES. 

iv-5  p. 
No.  15    THE  HAGUE  CONVENTION  (VII)  OF  1907  RELATING  TO  THE  CONVERSION 

OF  MERCHANT  SHIPS  INTO  WAR-SHIPS,    iv-5  p. 
No.  16    THE  HAGUE  CONVENTION    (VIII)   OF   1907  RELATIVE  TO  THE  LAYING 

OF  AUTOMATIC  SUBMARINE  CONTACT  MINES,     iv-6  p. 
No.  17    THE  HAGUE   CONVENTION    (IX)   OF    1907   CONCERNING  BOMBARDMENT 

BY  NAVAL  FORCES  IN  TIME  OF  WAR,    iv-6  p. 

No,  18    THE  HAGUE  CONVENTION  (XI)  OF  1907  RELATIVE  TO  CERTAIN  RESTRIC- 
TIONS WITH  REGARD  TO  THE  EXERCISE  OF  THE  RIGHT  OF  CAPTURE 

IN  NAVAL  WAR.   iv-6  p. 
No.  19    THE  HAGUE  CONVENTION   (XII)   OF  1907  RELATIVE  TO  THE  CREATION- 

OF  AN  INTERNATIONAL  PRIZE  COURT,     iv-21  p. 
No.  20    THE  HAGUE  CONVENTION    (XIII)   OF   1907  CONCERNING  THE  RIGHTS 

AND  DUTIES  OF  NEUTRAL  POWERS  IN  NAVAL  WAR,    iv-11  p. 
No.  21    THE   GENEVA   CONVENTION   OF   1906   FOR  THE   AMELIORATION   OF  i;Hi 

CONDITION  OF  THE  WOUNDED  IN  ARMIES  IN  THE  FIELD,    iv-17  p. 
No.  22    DOCUMENTS   RESPECTING   THE  LIMITATION   OF  ARMAMENTS.      v-32   p. 
No..  23    OFFICIAL  COMMUNICATIONS  AND   SPEECHES   RELATING  TO  PEACE  PRO- 
POSALS.   vi-100  p. 
No.  24    DOCUMENTS   RELATING  TO   THE   CONTROVERSY   OVER    NEUTRAL   RIGHTS 

BETWEEN  THE  UNITED  STATES  AND  FRANCE,  1797-1800.  ,  vii-91  p. 
No,  25    OPINIONS    OF    TBS    ATTORNEYS    GENERAL    ANT)    JUDGMENTS    OF    THE 

SUPREME  COURT  AND  COURT  OF  CLAIMS  OF  THE  UNITED  STATES 

RELATING  TO  THE  CONTROVERSY  OVER  NEUTRAL  RIGHTS  BETWEEN 

THE  UNITED  STATES  AND  FRANc£,a79748(XL   v-340  p/    (4)x 

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